Answered: EXAMPLE 1.2 Consider the following data…

EXAMPLE 1.2 Consider the following data of a company for the year 1997: Sales = $ 1,20,000 Fixed cost = $ 25,000 Variable cost = $ 45,000 Find the following: (a) Contribution (b) Profit

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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Concept explainers

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.

Question

EXAMPLE 1.2 Consider the following data of a company for the year 1997:
Sales = $ 1,20,000
Fixed cost = $ 25,000
Variable cost = $ 45,000
Find the following:
(a) Contribution
(b) Profit

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EXAMPLE 1.2 Consider the following data of a company for the year 1997:Sales = $ 1,20,000Fixed cost = $ 25,000Variable cost = $ 45,000Find the following:(a) Contribution
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